Which of the Following Is NOT a Reasonable Option for Deploying

question 79

Multiple Choice

Which of the following is NOT a reasonable option for deploying a diversified company's financial resources?

• A) Making acquisitions to establish positions in new businesses or to complement existing businesses
• B) Investing financial resources in cash cow businesses until they show enough strength to generate positive cash flows
• C) Funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses
• D) Paying down existing debt,increasing dividends,or repurchasing shares of the company's stock
• E) Investing in ways to strengthen or grow existing businesses

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Definitions:

Single-Price Monopoly

A market condition where a monopolist charges all consumers the same price for its product, despite the cost of production.

Pay-per-view

A type of television or online streaming service where the viewer pays to watch a particular event or program, typically used for special events or premium content.

Marginal Cost

The outgoings involved in creating one more unit of a product or service.

Price Discrimination

Involves selling the same product to different customers at different prices based on what each is willing to pay, rather than differences in production cost.